Los Angeles Claims Adjuster Property and Causality Practice Exam

Who does an independent adjuster primarily work for?

1. A policyholder

2. An insurance company

3. A government agency

4. A law firm

The correct answer is: An insurance company

An independent adjuster primarily works for an insurance company. Their role is to conduct claims investigations impartially on behalf of the insurer. This includes evaluating damages, assessing the validity of claims, and providing recommendations based on their findings. Independent adjusters are often hired when an insurance company needs additional support during peak times, or when there may be a conflict of interest with in-house adjusters. While independent adjusters may interact with policyholders and other stakeholders, their primary obligation is to the insurance company that engages their services. Their assessments and reports ultimately serve to assist the insurer in making informed decisions regarding claims payments and policyholder relations. This relationship emphasizes the adjuster's responsibility to uphold the interests of the insurance company while performing their duties in a fair and professional manner.